MTR Rates Regullation – Market Impact

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Audytel, at the request of the President of NRA (UKE), has prepared the research report on the regulatory impact of the MTR regullation and the MTR asymmetry on the development of the Polish telecommunications market.

The report is based on the market data from the years 2003-2009 and forecasted results for 2010. The analysis shows, that the implementation schedule of the MTR reductions favorably influenced the level of competition in the market: it contributed to lowering consumer prices, removed barriers to development of new services and  increased service innovation. MTR asymmetry facilitated the the market entry of new MNOs (such as P4 and Cyfrowy Polsat). As a result, consumers have enjoyed a total benefit of around 20 billion zł.

Quantitative analysis showed a strong correlation of MTR and retail prices – retail prices falling in the wake of the decrease in MTR on the the Polish market. There was no evidence for of so-called „waterbed” effect, predicted by some analysts a year earlier. The report recommends to the President of NRA (UKE) the continuation of the MTR reduction policy, including the asymmetry for new entrants MNO, for at least next two years (i.e. until the end of 2012).